Mozambique

Office leasing activity expected to increase

The Maputo office market offers a nuanced landscape of challenges and prospects. Positioned as Mozambique's economic hub, Maputo attracts enterprises looking to establish a foothold in the country. However, amidst economic turbulence, the halted LNG project, elevated inflation rates and security concerns have contributed to a decline in office rental rates since 2021.

Prime office locations in Maputo, notably the JAT/New Downtown and burgeoning business precincts like Julius Nyerere/Avenida Marginal, offer contemporary office accommodation with vital amenities. They cater for an eclectic range of businesses spanning local enterprises to multinational corporations operating across the finance, oil and gas, and telecommunications sectors. A recent leasing milestone saw GRIT Real Estate Income Group sign an 11-year lease agreement with Total Mozambique at the Commodity House Phase One development, culminating in a building occupancy of 95%.

Vibrant retail sector

The retail market in Maputo is experiencing robust growth, reflecting Mozambique's economic recovery and increasing consumer purchasing power. Key drivers include new store openings, strategic acquisitions, and a burgeoning e-commerce sector projected to significantly influence the retail industry outlook. The expansion of distribution channels and strong M&A activity are benefiting companies operating in Mozambique's retail markets, while increasing disposable incomes among middle-class families and the ease of access to retail products are further stimulating market growth.

Key retail locations underscore these positive trends. For instance, Polana Shopping Center, located in the Polana neighborhood, continues to attract significant foot traffic with its blend of local and international brands, dining options, entertainment amenities, and a comprehensive supermarket.

Similarly, Centro Comercial 24 de Julho in the city center maintains high consumer engagement with its diverse array of clothing boutiques, electronics retailers, and culinary establishments. Other prominent retail hubs like Baia Shopping Mall and Maputo Shopping Center, along with the widespread presence of the renowned supermarket chain Shoprite, highlight the robust performance and growth trajectory of Maputo's retail market.

Industrial sector poised for growth

Maputo's industrial sector is a cornerstone of the city's economic landscape, demonstrating strong performance and attracting both domestic and international investors. The strategic location near major transportation arteries and the Port of Maputo facilitates seamless trade and logistics operations, offering convenient access to regional markets. This prime positioning is a significant driver of industrial activity, enhancing the sector's appeal to investors and supporting the growth of diverse industrial segments, including manufacturing, agro-processing, logistics, and construction.

Key industrial zones, such as the Maputo Port area and the Matola industrial area, exemplify the sector's vitality. The Maputo Port area, despite featuring predominantly small, low-grade colonial warehousing, has seen significant renovation and modernization efforts. Meanwhile, the Matola industrial area offers a range of warehousing facilities from lower to higher grades and hosts large-scale industrial buildings occupied by prominent businesses such as Parmalat, Ford, Caterpillar, Volvo, and British American Tobacco. The prevalence of owner-occupied facilities in Matola underscores the stability and long-term commitment of established businesses, further reinforcing the sector's robust performance and promising investment prospect

Positive Outlook for the residential sector

Forecasts suggest a surge in demand for prime residential properties in Maputo in the near term. Despite recent market contractions, the prestigious Sommerschield district, synonymous with luxury residences and gated communities, has limited property available to rent or buy.

Conversely, Costa do Sol emerges as a burgeoning hub along the scenic coastline, offering an array of waterfront properties, beachfront villas, and contemporary apartments boasting sweeping views of the Indian Ocean. This evolving landscape witnesses a transition from traditional detached houses to modern living spaces. Notably, luxury apartments in this area command monthly rentals of approximately USD 4,500.